This article was published on LIGA.Business.
Bali is an Indonesian island that is considered one of the most desirable vacation destinations around the world. It is a great choice to invest in real estate considering Bali’s tourism attractiveness and Indonesia's economic growth. In addition, the country's government encourages foreign investors to invest in Balinese real estate.
Why should you invest in real estate in Bali and what should you pay attention to when choosing a property? Let's explore further.
Why exactly Indonesia?
Indonesia is an archipelago of over 18,000 islands with remarkable nature. With about 280 million inhabitants, Indonesia is the world's fourth most populous nation. Over the past few decades, Indonesia has developed into a vibrant democracy with the largest and most rapidly growing economy in Southeast Asia. The country's economy is evolving steadily and now ranks 16th in the world.
The official currency in Indonesia is the stable rupiah. The inflation rate is in the range of 2 to 4%, which demonstrates the country’s economic stability. One significant advantage is that you can legally convert cryptocurrencies and fiat money using official crypto exchanges.
According to Standard Chartered Bank, Indonesia's economy is forecasted to grow from 4.2 trillion U.S. Dollars in 2020 to 10.1 trillion U.S. Dollars by 2030 to develop into the world's fourth largest economy in terms of purchasing power parity.
Advantages of investing in real estate in Bali
- 1. Bali is a tourism attractive region
The island is the most popular vacation destination for Indonesians. For example, in 2022, more than 8 million Indonesians visited Bali.
Bali can offer everything that can excite tourists, including exotic plants, volcanic landscapes, endless rice fields, authentic bars and cafes, and amazing panoramas of the sea and mountains. The tourist season on the island lasts all year round, and the number of visitors averages about 500,000 per month. Most people come to Bali from Australia, India, China, the United States, and the United Kingdom.
It is worth mentioning that the region rebounded fairly quickly after the pandemic, with 6.3 million travelers having visited the region during 2023 alone. - 2. The island in constant improvement
Bali keeps on developing year after year. For example, in 2022, they completed the reconstruction of the port of Sanur, and in 2024, they will open the Bali International Hospital.
In addition, in 2024, Bali’s transportation system is planned to be reconstructed: the Gilimanuk - Mengwi highway will be built, which will run through the entire territory of Bali and connect it to Jakarta. And thanks to the renovated Gilimanuk port, which is the main passenger and cargo hub between Bali and the island of Java, it is expected that the number of visitor to Bali will reach 14 million people per year.
And as early as 2025, the island will open Paramount Theme Park Bali from the world-famous Paramount brand. - 3. High profitability
Real estate in Bali is considered rather profitable. Every year the rental price of real estate on the island increases by 15-17%. And the average return on investment in real estate in Bali is in the range of 12% to 20% per year. Thanks to this, investors' investments can pay off in 5 to 6 years. - 4. Accessible prices
Another advantage of investing in real estate in Bali is a low investment threshold. In fact, you can buy there an apartment at a price starting from 143,000 U.S. dollars, a renovated villa with at a convenient location from 350,000 U.S. dollars, a cottage with a plot of land from 212,000 U.S. dollars. It should also be noted that the price of land in Bali is much lower than on other renowned islands around the world. - 5. Special government programs
Bali ranks fourth in the world for investment attractiveness. The country's authorities are doing their best to encourage and facilitate foreign investment by continuously improving the conditions for investors at the legislative level. In particular, the Indonesian government has promised to continue implementing structural reforms to further ease the business environment in the country, and to provide various tax incentives and increase the number of vacancies for foreign workers. - How to choose a property for investment?
You should start by choosing a location. For example, An example of one of the most popular places in the island, and therefore the most profitable for real estate investment opportunities in Bali, is Canggu. This is a village by the sea, which is mostly visited by tourists, so the demand for hotel rooms in Canggu is high. With some of Canggu’s neighborhoods just starting to grow, this opens up new opportunities for investors. In recent years, the number of tourists has been steadily growing, thus creating a demand for new hotel complexes with developed infrastructure in the area.
You should also decide on the type of real estate you would like to invest in. It can be a plot of land , a villa or an apartment; your choice will depend on your goal. If you focus on the price of your investment property, your most favorable option may be an apartment, as it is cheaper than a villa. What is more, one of the advantages of choosing such a property is that you can rent it it out to a management company engaged in finding guests and providing comprehensive maintenance of the property. You can also purchase an apartment at the construction stage and then resell it after its completion, making about 50% of the income after the sale.
Once you have decided on the type of real estate you want, you should start looking for it. At this stage, you should choose a trustworthy developer. You should check what investment projects they have already completed, and check all the necessary documents for the property you are interested in, including land rights, development rights and tax documents.To get a more detailed understanding of the peculiarities of Indonesian laws, you should contact a local lawyer.
In the photo: Anton Taranenko, the founder of ANTA Group.
One of the most promising options for investment in Bali is ANTA Residence Canggu, the premium apartment hotel. The investment project is being implemented by developer ANTA Group, which has been creating properties all over the world for more than 10 years.
ANTA Residence Canggu is a 5-star hotel complex offering a wide range of infrastructure. It is located five minutes from the Indian Ocean.
“We have come to the Bali real estate market with a unique concept that is yet to emerge on the market,” says Anton Taranenko, the company's founder, “We use Balinese style accents in our architectural design, such as a roof in the shape of perfect surfing waves and a jungle park right on the roof. Our goal is to plant 10,000 tropical plants on the territory of the complex. This is our way of contributing to the preservation of the island's nature”.
The ANTA Residence Canggu project was launched in early 2023, and the construction began in November 2023. The project’s completion is scheduled for the 4th quarter of 2025.
The complex will include 113 apartments, and its living area will be 4,052 m². You will be able to enjoy a walk in the jungle on the rooftop of the aparthotel, go to the gym, swim in the tropical infinity pool overlooking the ocean, and attend a surf school. If you need to work while traveling, you will be able to do it in a coworking space. In addition, the complex will provide an opportunity to relax in a spa or have a snack at a world-class restaurant or coffee shop. A children’s space with babysitters will be arranged specially for families with children. The complex will have a rooftop event hall for various events, concerts and parties. It will accommodate 500 people and be unparalleled in Canggu.
Visualization: ANTA Residence Canggu (Canggu, Bali).
"Our hotel will become not just a place to live, but a genuine point of attraction on the island. The services and infrastructure gathered in one place make our complex distinctive among others and will not leave our visitors indifferent. Guests of ANTA Residence Canggu will definitely want to come back here," says Anton.
The complex will provide guests with bikes for rent, which they can ride around the island. Bikes are part of the units' equipment, so investors will receive additional income from their lease. In addition, guests will be provided with a personal transfer option around the complex by golf cart.
The property includes 5 types of apartments ranging from 38 m². The price starts from 144, 900 U.S. dollars. In this project, the investor will receive passive income, because the international hotel operator Ribas Hotels Group (it manages 28 properties) will be engaged in maintaining and leasing apartments.
So Bali is not only about natural beauty and picturesque landscapes, but also about great investment potential. Rapid economic development, continuous growth of the tourism sector and infrastructure improvement make this region particularly attractive to foreign investors.
Invest in Bali with Ribas Hotels Group!
Subscribe to our blog to keep up with the latest hospitality market trends!
